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90 seconds at 9 am with BNZ: IMF boss arrested over sex assault; Tight Budget to bet on strong growth; Obama warns of US debt ceiling chaos

90 seconds at 9 am with BNZ: IMF boss arrested over sex assault; Tight Budget to bet on strong growth; Obama warns of US debt ceiling chaos

Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news the Managing Director of the International Monetary Fund (IMF), Dominique Strauss-Kahn, has been arrested and charged with sexually attacking and kidnapping a maid at a New York Hotel.

He was arrested as he was about to fly out of New York back to France. Police allege he left the hotel in a hurry and they have found evidence containing DNA.

The news has shocked the international financial community and the French political scene, where he was expected to challenge for the Presidency of France.

The IMF is a key player in the global financial system and Strauss-Kahn has played a central role in various bailouts.

See more here from the New York Times.

Meanwhile, the New Zealand government is expected to release relatively strong growth forecasts and a move towards surplus in 2015/16 when it publishes the budget on Thursday at 2pm. It is also expected to announce zero net growth in government spending.

However, Treasury has over-estimated growth for the last three years. See more here in my opinion piece on why John Key is dreaming if he thinks growth will solve his problems.

Meanwhile, US President Barack Obama has warned the Congress that the US government will hit its debt ceiling of US$14.3 trillion as soon as tomorrow and a default would throw the global financial system into turmoil.

The US Treasury can juggle its finances until early August to avoid default, but Obama argues the Congress must agree on an increase in the ceiling before then.

See more here at Bloomberg.

Financial markets will be watching European debt turmoil, the US debt situation and China's growth wobbles closely in coming weeks.

No chart with that title exists.

 

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14 Comments

There's that "bet" word again.

Not too many gamblers ever come out ahead. Almost none, in fact.

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But "bet" is so much more acceptable than suggesting "lie".

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Can't believe the IMF chief, dude needs to keep it in his pants or get a hooker. Apologies for the crassness of my statement, its true though.

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Just another political sideshow.

It doesn't matter how often they recast, the role remains the same, and the performances never improve.

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Rule...........never ask the naked guy for a tip..!

Although I think he will argue in his defence....A.... that he does not speak Puerto rican

                                                                                

B. Her gesticulation led him to believe an invitation was at hand.

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IMF Names Replacement as Chief Awaits Arraignment

"Mr. Lipsky, the I.M.F.’s first deputy managing director, is a former U.S. Treasury executive and onetime banker at JP Morgan."

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Elliot Spitzer was taking on Wall St and got into trouble for his extra-professional sexcapades, Strauss-Khan has IMF (albeit slowly) turning its back on 30 years of neo-Liberal voodoo-nomics and he gets into trouble for said sexcapades.

Just an observation.......

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Ever wondered why all that deregulation took place during Bill Clinton's presidency? ;-)

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Hay bazza why not just get rid of the debt ceiling if you're just going to increase it as needed anyway?

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BNZ-Business NZ PSI for April shows a strong rebound in Canterbury - but there is 'devil in the detail'

http://www.interest.co.nz/charts/confidence/psi-index

The full Report and BNZ's commentary is here >> http://www.businessnz.org.nz/file/2095/April%202011%20PSI%20Release.pdf

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Also, who saw Q&A at the weekend?  Russel Norman was not the most delusional person there, which is a turnaround for the Greens, I thought. Historically they would talk about weed and voting rights for dolphins, 

Dunne was atrocious. It's as if he's been around at Nandor's place....

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Maori Party lady was the worse, only had one answer to every question: "invest in our children's future"??

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So the IMF man is facing charges on sexual assault....hmmmm. Well isn't that what the IMF does best ?, entire countrys  have been s&%&%.d by the IMF and no one ever pressed charges.

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"A proposed freedom camping law, which will give councils the power to fine illegal campers $200, has been welcomed by Marlborough camping ground owners.

The bill will include $200 instant fines for illegal camping and fines of up to $10,000 for anyone successfully prosecuted for illegally discharging a campervan's sewage.

This is turning into a joke...campervans with black and grey waste storage are not the problem. The problem is the lack of facilties and the desire on the part of campsite owners to boost incomes. The problem is the lack of information given to tourists who are sold a dream in a pissy little van. Off they go to discover 'dunnies' are few and far between.

Legislation will not stop the problem. Improving toilet facilities and putting in the road signs to indicate how far to the next one, will solve most of the problem. Identifying the bad areas is easy. Put the bloody toilets in those spots. Charge a special levy on the companies that hire out the pissy tourist vans and use the funds to provide and maintain the dunnies. That will drive up the cost of those pissy vans...the demand will go away...the companies providing campervans with waste storage will survive.

Get this message into Nick Smith's nut...if you can.

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